Our Correspondent
Kohima, Nov. 27 (EMN): The state government has projected a total requirement of INR 1,08,872 cr. to the fifteenth finance commission (2020-25).
In a memorandum to the 14-member visiting team from the 15th finance commission (FC), the government of Nagaland highlighted the fund requirements of the state in detail under separate heads.
These include INR 96370.46 cr. as the projected revenue deficit during 2020-21 to 2024-25 (pre-devolution); INR 3535.50 cr. for maintenance of infrastructure assets; INR 4392.93 cr. for critical infrastructure requirements; INR 1212.45 cr. for grants to village councils (VCs) and village development boards (VDBs); INR 496.10 cr. for grants to urban local bodies; and INR 2864.18 cr. as a one-time grant to waive the budgetary deficit and liabilities as on 31st Mar. 2018.
According to the memorandum, an amount of INR 707.10 cr. would be required annually for maintenance of infrastructure assets of 35 departments which amounts to INR 3535.50 cr. for five year period under 35 departments, while an amount of INR 4392.93 cr. was put up for consideration to the FC for 14 critical infrastructure development including schools, housing, new Raj Bhavan, High Court complex, Duda, and strengthening of power sector through generation projects among others.
The state government also highlighted that due to the change of funding pattern from 1989-90, liberal assistance to the state was restricted and the financial position of the state had deteriorated as the government of India had discontinued grant of fund for covering the balance from current revenue gap through additional central plan assistance.
It mentioned that the one-time special grant of INR 365 cr. from the centre in 2003 to wipe out the accumulated budgetary deficit had only brought relief to the state for a short period and the deficit had started to mount again as the state had to create avenues for appointment of the unemployed youth in the absence of other employment opportunities.
The state also highlighted the negative impacts of the 13th FC which had adopted a normative approach of awarding grant to all the states without taking into account that the state of Nagaland was created out of a political exigency, and the special category states were denied any special treatment. During this period (2010-15), it pointed out that the state had to suffer on several fronts: short assessment on salary requirements, reasons for huge number of government employees; loss on power and road transport; SCA untied; non-release of funds for state specific schemes; and non-release of funds for development of Eastern Nagaland, thereby, the state faced a deficit of INR 1811.85 cr. when the 13th FC period ended.
Stating that while the 14th FC had recommended better and realistic financing for all the special category states, the state government mentioned that the increase of 10% tax devolution from the centre to the state by raising the states’ share from 32 to 42% hardly made little difference for a revenue-deficit state like Nagaland and due to huge burden, the state continues to have a post-devolution deficit. The state’s memo also pointed out that non-release of funds, particularly pertaining to 40 projects under special plan assistance (SPA), to Eastern Nagaland and state specific development projects had further accumulated the deficit for the state to INR 2864.18 cr. as on 31st March 2018.
The state government is hoping that the special category status to Nagaland should be seriously upheld, particularly in the backdrop of the peace process, to enable the state bring about development and progress.
It has been learnt that the state government had already submitted the memorandum to the commission earlier this year, but a supplementary memorandum could be made to the current visiting FC team after their meetings with various stakeholders.
